ALL: News on ATEL
Friday July 19 1:38 PM EDT
American Telecasting Announces Acquisition of Cincinnati
Wireless Cable Channels
COLORADO SPRINGS, Colo., July 19 /PRNewswire/ -- American Telecasting (Nasdaq: ATEL) announced it has entered into a definitive agreement with Cincinnati Wireless Cable, Inc. and other entities to acquire ten wireless cable (MMDS) channels and other subscription television assets serving over 3,000 subscribers in the Cincinnati, Ohio market. The acquisition will provide American Telecasting access to a market with approximately 750,000 households. Total consideration for the
purchase will be approximately $5.2 million, of which $2.2 million has been paid.
Robert D. Hostetler, president and CEO of American Telecasting, stated, "We are pleased with the acquisition of channels in the Cincinnati market. The acquisition complements our purchase of the
BTA (basic trading area) rights for Cincinnati in March 1996. It is also consistent with our strategy of clustering operating systems in neighboring areas in order to achieve operational and marketing
economies of scale." American Telecasting currently operates wireless cable systems in Columbus, Ohio, Louisville, Kentucky, as well as other Midwest markets.
American Telecasting, Inc. is the largest operator of wireless cable television systems in the United States, serving approximately 175,000 subscribers in 39 markets. Wireless cable television systems
use microwave frequencies licensed by the FCC to provide multiple-channel subscription television programming. Along with its commitment to delivering high levels of customer service, American Telecasting offers value programming packages by pricing its products lower than its franchise cable and direct broadcast satellite competitors. |
